Author: openjargon

AMP Ltd (ASX: AMP) shares are in in the green at the time of writing.

Back in February, the share price crashed 26% after the financial services company posted a disappointing FY25 financial result.

This marked the company’s largest one-day fall since the wealth manager since 2003, when its value tanked 36%.

At the time, AMP reported a 20.8% lift in underlying NPAT, a 9% increase in total assets under management (AUM), and a 11.3% decline in statutory NPAT over the year. The result was far below market expectations across the board and investors were disgruntled.

Ongoing geopolitical tensions and concerns about Australia’s inflation data rate also weighed heavily on financial shares like AMP.

Thankfully, AMP’s first-quarter update was a little more positive. The company reported a 45% growth in Platforms net cashflows and improved Superannuation & Investments (S&I) net cash outflows in April.

There have been plenty of headwinds facing the company this year, but I still think AMP shares are a no-brainer buy. 

Here are three reasons why.

1. Excellent growth potential ahead

While AMP’s FY25 results disappointed investors, fact is, it still demonstrates that the company’s earnings are growing across its wealth platforms, superannuation business and also improved cash flow.

The first-quarter update in April confirmed that strong business growth is underway and revealed a significant momentum across several of its key divisions.

AMP is focused on improving its operational leverage in its platforms, and looking at new capital relief strategies to help enhance returns. 

AMP is also planning to build on its position in China and leverage retirement expertise in New Zealand in response to ongoing sector tailwinds.

The good news is that AMP is still viewed as a potential turnaround story.

Many think that if management successfully executes its strategy, improves profitability, and restores market confidence, the share price could benefit from both earnings growth and a higher valuation multiple.

2. Management is confident

At the same time as announcing its first-quarter results, AMP announced a $150 million share buyback. This is positive for investors because it reduces the number of shares on issue and can increase earnings per share over time. It also flags management confidence in the business. 

3. Brokers are bullish

According to Market Index data, the majority of brokers have a strong buy rating on AMP shares, and expect a 6% upside (at the time of writing) over the next 12 months to an average price target of $1.70 a piece.

TradingView data shows some are even more bullish. Out of 10 analysts, eight have a buy or strong buy rating on AMP shares and another two rate the financial stock as a hold. The average 1.715 target price implies a 7% upside ahead and the maximum $1.94 target price implies the shares have the potential to climb another 22% from here, at the time of writing.

Citi is one of the more positive brokers. It renewed its buy call on AMP shares with a $1.80 target earlier this month.

The post 3 reasons to buy AMP shares today appeared first on The Motley Fool Australia.

More reading

• 7 ASX 200 shares with strengthened buy ratings this week

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ages are more useful than others when it comes to checking your superannuation progress. Age 53 and age 63 are two of them.

At 53, retirement is close enough that the numbers begin to feel important, but there is still time to make meaningful changes.

At 63, retirement may be only a few years away, and superannuation is starting to look less like a long-term savings account and more like a future income stream.

So, how much does the average Australian have at these ages?

What does the average 53-year-old have?

Because age 53 sits neatly within the 50 to 54 age bracket, the average balance for that group provides a useful guide.

The latest data shows that Australians aged 50 to 54 have average superannuation balances of approximately $190,000 for women and $254,000 for men.

That means the average 53-year-old is likely to have a balance broadly around those levels.

These are not small amounts, but they also highlight why the early 50s can feel like a financial wake-up call. Retirement is no longer a distant concept, yet the balance may still be well short of what is needed for a more flexible lifestyle after work.

This is the stage where decisions can still have a real impact. Extra contributions, reviewing investment options, reducing unnecessary fees, and consolidating accounts can all help improve the final outcome.

What does the average 63-year-old have?

By age 63, superannuation balances are typically much larger.

Australians aged 60 to 64 have average balances of approximately $313,000 for women and $396,000 for men. Because age 63 falls within this bracket, those figures provide a reasonable guide for the average balance at that age.

As you can see, the increase from 53 is significant. This reflects a powerful combination of ongoing employer contributions, investment returns, and the fact that many Australians reach their peak earning years in their 50s and early 60s.

It also shows why the decade between these two ages can be so important. Superannuation can still grow materially in the final stretch before retirement, particularly when contributions continue and markets are allowed time to do their work.

Is that enough to retire?

This depends heavily on the type of retirement you want.

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement requires around $630,000 in super for a single person and $730,000 for a couple. This assumes home ownership and some Age Pension support over time.

A modest retirement requires far less, at around $110,000 for a single person and $120,000 for a couple. That level sits slightly above the Age Pension and covers the basics, but with limited room for extras.

On those benchmarks, the average 53-year-old is unlikely to be in a position to retire immediately, unless they have significant assets outside super or very low living costs.

At 63, the average balance is more substantial, but early retirement still requires careful planning. A single person may still fall short of the comfortable benchmark, while a couple combining two average balances may be much closer.

Foolish takeaway

The average Australian superannuation balance at 53 is around $190,000 for women and $254,000 for men. By age 63, that rises to around $313,000 and $396,000, respectively.

Those figures show meaningful progress over a decade, but they also highlight the importance of planning before retirement arrives.

Superannuation is not just about reaching a number. It is about giving yourself options. And between 53 and 63, those options can still change significantly.

The post What’s the average Australian superannuation balance at ages 53 and 63 in 2026? appeared first on The Motley Fool Australia.

More reading

• How much should I have in my superannuation by age 52?
• Term deposits or ASX dividend shares as the RBA holds?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?
• New to investing? 3 ASX shares to set and forget until 2036
• How much do I need in my superannuation to get $5,000 per month in passive income?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

How much money you should have in your superannuation depends on your age, income, and the type of retirement you’re planning to have.

At age 52, you’re roughly 10-15 years away from stopping work. At this point you should know exactly what your superannuation balance is, how much you need to retire comfortably, and exactly how to get there.

Let’s break it down.

How much is retirement going to cost me?

According to data from the Association of Superannuation Funds of Australia (ASFA), there are two main retirement lifestyle brackets: modest and comfortable.

A modest retirement is one that allows you to meet essential living costs slightly above the Age Pension payment. 

This includes housing-related expenses, groceries, utilities, transport, and basic health insurance. There is some room for infrequent and low cost leisure activities and perhaps the occasional meal out. Travel will be limited, as will your discretionary budget. It assumes you own your home outright.

ASFA estimates that a modest retirement will cost around $36,434 per year for singles and around $52,473 for couples. These figures assume you’ll also receive a part Age Pension. In order to fund this amount, singles will need around $110,000 in their superannuation when they retire, and couples around $120,000.

For many Australians, a modest retirement is achievable, but it’ll require a tight budget and careful planning. 

The other option is to aim for a comfortable retirement lifestyle.

ASFA defines a comfortable retirement as one which allows Australians to maintain a good standard of living above and beyond the Age Pension. 

It assumes you’ll keep top-level private health insurance, will own a reasonable car brand, undertake regular leisure activities, have funds for home repairs and renovations, go for an occasional meal out, and maybe even an annual domestic trip (or even the occasional overseas one).

The data shows that a comfortable retirement is estimated to cost around $55,923 per year for singles and $78,566 for couples. Again it assumes you’ll receive a part Age Pension and that you own your home in full. In order to fund this, single Australians will need around $630,000 in their superannuation at retirement, and couples will need around $730,000.

Ok, so what do I need in my superannuation at age 52 to live a comfortable lifestyle when I retire?

I’ve crunched the numbers using ASFA’s online super detective tool and, at age 52, Australians need a superannuation balance of $347,500 to be on track to reach the balance they need to have a comfortable retirement lifestyle.

Falling behind? Here’s some tips to catch up

The quickest way to increase your superannuation balance is to add extra money yourself. Don’t just rely on the compulsory minimum employer superannuation contribution to do the heavy lifting for you.

Make sure that you’re taking advantage of the concessional contributions cap, which is currently $30,000 per financial year. If you contribute less than the before-tax cap in one financial year, you can catch up when the leftover amount is carried into the next year. In fact, you can carry over your leftover pre-tax cap amounts from the past five years, which means you can make larger contributions above the $30,000 limit without the extra tax. 

You might also be eligible for the bring-forward rule. This is similar to the catch-up concessional contribution, but the bring-forward rule applies to after-tax (i.e non-concessional) contributions. Under this rule, eligible Australians can contribute three years’ worth of non-concessional contributions (up to $120,000 per year) at once.

Low and middle-income Australians might be eligible for a government co-contribution if they make after-tax contributions to super. This means you’d be, effectively, boosting your balance with extra government funds.

If you don’t have enough surplus cash to add to your superannuation yourself, can your partner do it for you? Couples can boost their combined super savings by the higher-income earner contributing after-tax funds to the lower-income earner’s account. 

Also make sure you’ve checked for lost super, consolidated your super funds and that your fund is performing well. Every cent counts.

The post How much should I have in my superannuation by age 52? appeared first on The Motley Fool Australia.

More reading

• What’s the average Australian superannuation balance at ages 53 and 63 in 2026?
• Term deposits or ASX dividend shares as the RBA holds?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?
• New to investing? 3 ASX shares to set and forget until 2036
• How much do I need in my superannuation to get $5,000 per month in passive income?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Watching the Reserve Bank of Australia move interest rates has become something close to a national sport. This week brought another match.

And despite inflation still running very hot, the board held the official cash rate at 4.35% rather than raise it again, its first pause after three hikes in a row this year.

That offers a moment of calm. It does not solve the deeper problem.

Headline CPI sits near 4.2% and the trimmed mean remains above the RBA’s 2–3% target band, where it has stubbornly stayed for a long time. The cost of almost everything has climbed for years, and those price tags are not coming back down.

So if you have capital set aside and you want it to generate income, a simple question will sit with you: term deposits or ASX dividend shares?

There is no single right answer. 

It depends entirely on you.

What certainty actually costs

A term deposit does one thing very well. It pays a fixed, known return and hands back your original capital at the end of the term.

With the cash rate steady, the big banks are offering around 5% on a one-year term, and the most competitive providers sit closer to 5.4% to 6%. Deposits up to $250,000 per institution (i.e. bank) are also covered by the Government’s Financial Claims Scheme, which is about as close to a guarantee as money gets.

For a retiree drawing income, or anyone who needs their capital intact within a year or two, that certainty is worth a great deal.

However, certainty has a price. Your money is locked away for the term, and breaking it early usually means forfeiting interest. The income is taxed at your full marginal rate. And with inflation near 4.2%, a 5% return leaves precious little once rising prices and tax take their cut.

You protect your capital. You do not grow it by much.

Why owners tend to win over the long run

Dividend paying shares flip the trade-off. There is no guaranteed return and no protected capital – share prices fall as well as rise. That risk is real, and it should not be waved away.

The reward is total return: the income, plus the growth in the value of the business behind it.

Take Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The diversified investment house has lifted its dividend every year for more than two decades, and over the past 25 years it has delivered a total shareholder return of roughly 12.9% per annum – comfortably ahead of any bank paid interest rates. Its recent payout, grossed up for franking credits, equates to a yield near 3.4%. 

Franking matters here. Those credits can lift the after-tax value of dividends well above the headline number, something a term deposit simply cannot offer.

Income-focused names tell a similar story. APA Group (ASX: APA) has grown its distribution every year since 2004, currently yielding around 5.8%. 

The catch is time. Shares reward patience and punish anyone who needs their money on a fixed date.

Foolish takeaway

This is not a contest with one winner. It is a question of fit.

If your time frame is short, your need for the capital is certain, or volatility keeps you up at night, term deposits earn their place. If you can stay invested for years and ride out the swings, owning quality dividend payers has historically delivered more.

Many investors land somewhere in between – cash for near-term needs, shares for the long climb.

The RBA may be on hold. Your money does not have to be. The right mix comes down to your time frame, your risk profile, and what you genuinely need it to do.

The post Term deposits or ASX dividend shares as the RBA holds? appeared first on The Motley Fool Australia.

More reading

• How to invest $9,000 for passive income in superannuation?
• Close to retirement? 4 ASX shares for decades of income
• How to invest in ASX shares when you can’t find stocks to buy
• Here are my 5 best ASX passive income stocks
• APA Group announces estimated FY26 final distribution, up 1.7%

Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares may not be one of the most popular dividend options because historically it has had a low dividend yield.

For many years, the ASX healthcare share had a lower dividend yield than all other ASX blue-chip shares including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Telstra Group Ltd (ASX: TLS) or Woodside Energy Group Ltd (ASX: WDS).

The CSL dividend has grown significantly over the last two decades, but the dividend yield was so low because it usually had a fairly high price/earnings (P/E) ratio with the market pricing it for long-term earnings growth.

But, the company’s growth outlook has significantly diminished over the last couple of years, which is largely why the CSL share price has dropped by approximately 66% since July 2024.

The latest result from CSL demonstrated the difficulties it’s facing.

For the six months to 31 December 2025, the half-year report showed a total revenue decline of 4% to US$6.3 billion, underlying net profit (NPATA excluding restructuring costs and impairments) fell 7% to US$1.9 billion and reported net profit sank 81% to just US$0.4 billion.

However, after such a painful decline of the CSL share price in recent times, the projected payout now translates into a sizeable dividend yield, so we can consider the ASX healthcare share giant as an option for dividends.

So, let’s look at the potential annual FY27 dividend payment, which will be paid in 2027.

2027 dividend projection for owners of CSL shares

According to the projection on CMC Invest, the ASX healthcare share is forecast to pay an annual dividend per share of (AU) $4.27 in the 2027 financial year. This would represent a sizeable reduction compared to the FY25 annual payout. The FY26 payout is expected to be even lower, so the FY27 payout would represent a bit of a recovery.

At the time of writing, that projected payout translates into a possible dividend yield of 4%, excluding any possible franking credits. The business generates most of its earnings overseas, so it doesn’t generate many franking credits to pay to shareholders.

If someone were to invest $8,000 in CSL, they would be able to buy 75 CSL shares with a bit of money left over.

With those 75 CSL shares, investors could receive $320.25 of cash and, I’m assuming, no franking credits.

Is this a good time to invest in the ASX healthcare share?

According to CMC Invest, there have been 11 analyst rating calls on the business in the last three months.

Of those 11, three were a buy and eight were a hold. So, the investment professionals are, on average, neutral of the company’s valuation right now.

The average price target of those 11 ratings is $136.05. That means, collectively, those analysts are predicting the CSL share price could rise 29% over the next year (at the time of writing).

The business last traded at that price in April 2026, so it’s not an outrageous prediction – just a recovery back to where it was a couple of months ago.

It seems like it could be worthwhile to consider being contrarian on CSL shares, though there are plenty of ASX shares out there where the foreseeable outlook is more certain.

The post If I invest $8,000 in CSL shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started with ASX shares can feel overwhelming. With thousands of stocks to choose from, knowing where to begin isn’t always easy.

One approach is to focus on high-quality businesses with strong competitive advantages and long growth runways. By buying and holding great companies for the long term, investors can benefit from the power of compounding while avoiding the temptation to trade in and out of the market.

For investors looking to build wealth over the next decade, here’s a mix of growth and income shares that could be worth buying and forgetting about until 2036.

Wesfarmers Ltd (ASX: WES)

Wesfarmers provides a strong foundation for any long-term portfolio.

The conglomerate owns market-leading businesses including Bunnings, Kmart, Officeworks, and Priceline. These operations generate reliable earnings and cash flow, supporting a growing stream of dividends for shareholders.

One of Wesfarmers’ greatest strengths is its ability to reinvest capital into new opportunities while maintaining a conservative balance sheet. This has helped it create value across multiple economic cycles.

The main weakness of this ASX share is that its mature retail businesses may not grow as quickly as younger companies. However, for investors seeking stability and income, that can be a worthwhile trade-off.

In a long-term portfolio, Wesfarmers can serve as the dependable anchor.

Goodman Group (ASX: GMG)

This $66 billion ASX share offers exposure to one of the most powerful structural growth themes in the market.

The property giant develops and manages logistics, warehousing, and data centre assets across the world. Demand for these facilities continues to grow as e-commerce expands and technology companies invest heavily in digital infrastructure.

Goodman’s strengths include its global footprint, development expertise, and relationships with major customers. It also has a large development pipeline that could support earnings growth for years to come.

The risk is that property stocks can be sensitive to interest rates and economic conditions. Its premium valuation also leaves less room for disappointment if growth slows.

Even so, Goodman provides investors with exposure to long-term global growth trends that could remain intact well into the next decade.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is arguably one of the ASX’s highest-quality growth companies.

The ASX healthcare share supplies imaging software to hospitals and healthcare providers around the world. Its Visage platform has helped it win major contracts in the United States, the world’s largest healthcare market.

The company’s strengths include high profit margins, recurring revenue, and a growing list of blue-chip customers. This ASX share also benefits from healthcare digitisation, a trend that still has significant room to run.

The obvious risk is valuation. Pro Medicus trades on a high earnings multiple, meaning expectations are already elevated.

However, for investors with a 10-year time horizon, Pro Medicus offers exposure to a world-class Australian growth company with substantial expansion potential.

The post New to investing? 3 ASX shares to set and forget until 2036 appeared first on The Motley Fool Australia.

More reading

• How to build a $1 million ASX share portfolio for retirement
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• Close to retirement? 4 ASX shares for decades of income
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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Goodman Group, Pro Medicus, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is the most tax-effective way for working Australians to build a long-term passive income.

The drawback is that you can’t access your funds until you reach your preservation age, which is typically around 60 years old, and you’ve met the conditions of release.

The good news is that by investing now, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

The question is, how much do you actually need in your superannuation to be able to receive the passive income you want when the retirement years hit?

Let’s break it down, using $5,000 per month as an example.

How much do I need in superannuation to get $5,000 of monthly passive income?

If you want to earn $5,000 in passive income every month from your superannuation, that equates to $60,000 per year in dividend payments.

The easy way to work out the superannuation balance you’d need is to divide your annual passive income by the dividend yield.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you’d have in your portfolio. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of dividend income.

Let’s break it down further.

A $2 million portfolio with a 3% dividend yield would create $60,000 of annual passive income.

A $1.5 million portfolio with a 4% dividend yield would create $60,000 of annual passive income.

To get the same $60,000 of annual passive income from a portfolio with a 5% dividend yield, you’d need closer to $1.2 million. And if the portfolio’s dividend yield is closer to 6%, the portfolio size could be more like $1 million.

And so on. As your dividend yield increases, the superannuation balance needed to earn the same level of passive income goes down.

What ASX shares can I get around these dividend yields?

There is a huge range of ASX dividend shares available for superannuation investments, and their yields vary significantly. 

But here are a few options to get you started.

Lower yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Macquarie Group Ltd (ASX: MQG), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable shares that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS) or Transurban Group (ASX: TCL), and blue-chip majors like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), which pay a dividend of around 3% to 4%.

For a higher 5% to 6% dividend yield, I’d look at dividend-payers like National Australia Bank Ltd (ASX: NAB), Woodside Energy Group Ltd (ASX: WDS), or packaging giant Amcor (ASX: AMC).

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX) or the Metrics Income Opportunities Trust (ASX: MOT). These typically yield around 9% or more. 

The post How much do I need in my superannuation to get $5,000 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• Australia’s new Age Pension rules: Age, income and asset tests explained
• The perfect ASX ETF retirement portfolio alongside your super
• How to invest $9,000 for passive income in superannuation?
• 10 amazing ASX ETFs for the next decade
• How to build a $1 million ASX share portfolio for retirement

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc, Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Older Australians might be eligible to receive the Centrelink Age Pension payment if they meet the age, income and asset guidelines.

The payment, which is designed to help fund retirees in retirement, is subject to an age, income and asset test.

The good news is, the rules are about to change, making more Australians eligible.

Here’s everything you need to know.

Age limit and maximum payment

The Age Pension is available to Australians aged 67 years and older.

It is paid on a fortnightly basis up to a maximum total payment of $1,200.90 per fortnight for singles and $1,810.40 for couples combined. 

These sums include the maximum basic rate, the maximum pension supplement, and the energy supplement.

The final amount you’ll receive (if anything) is heavily dependent on your income level and the assets that you own.

Age Pension income test

The income test assesses all of your income, pooled from all sources. That includes anything from superannuation contributions, investment income, part-time wages, bonuses, or commission payments. It’s applicable regardless of your age. 

From the 1st of July, the amount you can earn in retirement is expected to go up by $8-$16 per fortnight depending on your circumstances.

In order to receive the full Age Pension, from the 1st of July, single Australians are expected to be able to earn up to $226 per fortnight, and couples can earn up to $396 per fortnight.

But it’s still possible to receive a part pension if you earn over those thresholds. And Centrelink has raised these too.

From the 1st of July, singles are expected to be able to earn up to $2,627.80 per fortnight, and couples (living together) can earn up to $4,016.80 per fortnight and still qualify for at least a part-Age Pension. 

But, it’s important to note that your income is assessed on a sliding scale.

For a single person, your Age Pension will reduce by 50 cents for each dollar over $226 and for couples it will reduce by 25 cents for each dollar over $396.

It means that the more you earn, the lower your Age Pension payment will be, until it reaches zero.

Age Pension asset test

The asset test includes everything you own in full, in part, or have an interest in, but excludes the home you live in.

In order to receive the full Age Pension, from the 1st of July, single homeowners are expected to be able to own assets (including superannuation) up to a value of $333,000. For non-homeowners, this will be up to $600,000 in retirement.

But a couple has a different threshold, and it’s not double the amount of one person. From the 1st of July, a couple combined can own up to $499,000 in total if they own a property, or $766,000 if they don’t.

There is a similar rule for your assets, too. From the 1st of July, if your assets are less than $733,500 if you’re a single homeowner, and $1,000,500 if you’re a non-homeowner, you are still entitled to some level of payment.

Couples are also entitled to a part-payment so long as their combined assets aren’t more than $1,102,500 for homeowners. Non-homeowners can own assets totalling up to $1,369,500.

In order to determine how much income you make from your assets, Centrelink uses a deeming rule. And it looks like these deeming rate caps will get a boost next month too.

Deeming assumes your financial assets earn a fixed, set rate of income, regardless of what they actually earn.

This assumed income is then added to your other income to determine your Age Pension rate.

For single Australians, the first $66,800 of your financial assets will have a deemed rate of 1.25%. Everything over that is deemed to earn 3.25% interest.

Couples will have a 1.25% deeming rate on their first $110,600 of combined financial assets (this includes superannuation). Anything over $110,600 is deemed to earn 3.25%.

Don’t forget the ‘lower of two’ rule

The Age Pension eligibility depends on your income and the assets that you own. To ensure the system is fair, the Centrelink assesses you under both tests. It then applies whichever gives you the lowest rate of payment for your individual circumstances.

The post Australia’s new Age Pension rules: Age, income and asset tests explained appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Navigating the balance between super and investments in retirement is an important consideration for plenty of Aussies. 

Within their investment mix, retirees must also able to generate passive income through dividends without ignoring capital growth. 

Why dividend yields aren’t the only factor

While passive income is an appealing goal for retirees, making it the sole focus of a portfolio can actually undermine long-term financial security.

 Chasing high-yield investments often means concentrating in sectors like REITs, utilities, or other dividend stocks. 

This can reduce diversification and expose the portfolio to significant capital losses if those sectors fall out of favour. 

More importantly, a retiree at 65 today may live another 25 to 30 years, meaning inflation remains a genuine threat. 

A portfolio generating strong income today but delivering little capital growth can slowly erode real purchasing power over time. 

Balancing income with growth gives retirees a larger asset base to draw from, more flexibility during market downturns, and a better chance of not outliving their money. 

The goal, ultimately, isn’t just to generate cash flow, it’s to sustain a comfortable lifestyle for retirement. 

This goal can be achieved through a simple two fund portfolio. 

The growth engine 

The iShares S&P 500 ETF (ASX: IVV) tracks the S&P 500, giving you exposure to 500 of the world’s largest companies. 

This includes Apple Inc (NASDAQ: AAPL), Nvidia Inc (NASDAQ: NVDA) and hundreds more. 

Over the past 10 years, the fund has delivered roughly 15% annualised returns. 

For retirees with a 20-to-30-year time horizon (longer than most people assume), maintaining growth exposure is essential to prevent inflation eroding your purchasing power. 

At a management fee of just 0.04% per annum, IVV ETF is one of the cheapest ways to own global growth.

Your income stream

Where IVV builds wealth, the Betashares Australian Dividend Harvester Fund (ASX: HVST) pays the bills. 

The fund is specifically designed to provide high levels of dividend income to ASX investors. 

This ETF targets high dividend-yielding global equities, with distributions that have historically run above 7% per annum. 

That’s meaningful passive income you can use to supplement your superannuation pension payments – without selling down assets during volatile markets.

The superannuation complement

Australian retirees already have a built-in foundation of diversification through their super fund, which typically holds Australian equities, bonds, property, and infrastructure. 

This means your outside-super portfolio doesn’t need to replicate that complexity. 

IVV ETF adds international growth exposure that your super may underweight, while HVST ETF provides an income buffer during drawdown years.

The post The perfect ASX ETF retirement portfolio alongside your super appeared first on The Motley Fool Australia.

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• 10 amazing ASX ETFs for the next decade
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• Want to retire earlier? This mix of ASX shares and ETFs could help
• 3 high-quality ASX ETFs at 52-week highs I’d still buy
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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of best elements of Australia’s wealth and retirement system is superannuation, which offers lower tax rates compared to an individual’s tax rate for someone working full-time. Superannuation is appealing for passive income investing, whether that’s in retirement or building wealth towards retirement.

The obvious benefit of a lower tax rate is that it improves the net investment return.

If I were investing $9,000 into superannuation, I’d choose businesses that have long-term growth potential and can provide a dividend yield upfront as well.

Investing in superannuation can mean putting that money to work for many years, giving it more time for compounding.

I’ll outline two of the businesses I think are excellent long-term buys for passive income. If an investor had $9,000 (or more) to invest, I’d be highly supportive of the following ideas.

APA Group (ASX: APA)

In my view, APA has been one of the most stable ASX dividend shares over the last 20 years thanks to its energy portfolio.

Of course, share prices do regularly change. But, in terms of the dividend payout, APA has been extremely consistent for investors.

In terms of the payout, APA has hiked its annual distribution every year since 2004. That’s an impressive two decades of consistent growth, year after year.

Only one other business has grown its annual dividend for more consecutive years in a row than APA.

Its cash flow is a key metric that helps fund higher payouts. Its gas pipeline network is the key asset of its energy portfolio. A lot of APA’s revenue linked to inflation, giving the business protection against some of the headwinds its cost base is experiencing.

I like how the ASX share is investing in a variety of areas to boost its future earnings, including electricity transmission, batteries and gas-powered energy generation.

At the time of writing, APA’s FY26 distribution translates into a distribution yield of 5.4%.

With the retirement of Australia’s ageing coal power plants getting closer, other energy assets will become increasingly important, so APA has an important role to play in the future.

WCM Global Growth Ltd (ASX: WQG)

The other ASX share I want to highlight for superannuation investors wanting passive income is WCM Global Growth, a listed investment company (LIC) that focus on the global share market.

WCM aims to find companies with strengthening economic moats (competitive advantages).

An economic moat is what allows the business to stay ahead of its rivals and defend their market share/margins. A competitive advantage could be in the form of intellectual property, cost advantages and so on. When the competitive advantage is strengthening, it means the business is in an even stronger position to grow profit.

On top of that, WCM also wants to see the business has a corporate culture that enables the strengthening of its economic moat. I’d say a business doesn’t get better randomly, it’s through what the company does throughout its operations.

By hunting across the world for these high-quality businesses, WCM gives its portfolio a great chance to deliver outperformance because it can spread a very wide net to find those opportunities.

Since the LIC’s inception date in June 2017, its portfolio has delivered an average return per year of 15.8% after fees, outperforming the global share market by an average of more than 2%.

With that excellent level of investment return, the ASX dividend share has steadily grown its annual dividend each year since it started paying one in 2019. A few years ago, it changed to quarterly dividend payments – each quarter has seen an increase since June 2023.

The next year of dividends are guided to be 7.3%, including franking credits, at the time of writing. I think it’s a great investment for superannuation investors wanting passive income. I expect its dividend can continue rising in the coming years.

The post How to invest $9,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

More reading

• Close to retirement? 4 ASX shares for decades of income
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• How to make $2,000 of monthly passive income from ASX shares

Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.